The iPod Touch has a Marvell W8686B13 wifi chipset, which can be theoretically be put into monitor mode allowing you to sniff and inject packets and use a wifi password cracking app (when made), but as far as I know, no-one has done this yet.

EDIT: You can run Aircrack on 1.1.X, but there is no way to get IV's on your iPod yet (monitor mode required).

Even though it is ILLEGAL to hack a AP, I think there is a program somewhere, but it is a joke - NOT REAL. It would give you the same WEP address for every access point you try.

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Clearly we do not intend to perform any illegal activities with a program such as this or take part in whatever this "hacking" is you speak of. We would simply like to test our own network security or networks in which we are authorized to use/modify. LEARN HOW TO TALK ON THESE PAGES!!!

Clearly we do not intend to perform any illegal activities with a program such as this or take part in whatever this "hacking" is you speak of. We would simply like to test our own network security or networks in which we are authorized to use/modify. LEARN HOW TO TALK ON THESE PAGES!!!

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1) Don't bump
2) I usually wouldn't reply, but you bumped only 3 minutes ago and I have a final answer:

Apple would not allow an app like this on the AppStore, and, as far as I know, there is no such thing on Cydia.